Fiscal Responsibility Policy adopted by Council - 26/06/2007The Wanganui District Council has adopted a pre-election Fiscal Responsibility Policy - passed unanimously at its full Council meeting yesterday.
Mayor Michael Laws said that central government already has Section 26 of the Public Finance Act of 1989 which obliges government to conduct and publish a pre-election financial review.
"While no other territorial authority has such a policy, Wanganui has decided to take the lead on this issue.
"We will ensure that all fiscal and debt projections contained in the Annual Plan and Ten Year Plan are reviewed in the weeks leading up to the election. This will ensure that all political aspirants and the public are fully informed.
"I do not want a repeat of 2004 when the new council took office to find that most of the financial projections contained in the Long Term Council Community Plan (LTCCP) were worthless."
Under the Fiscal Responsibility Policy the Council will make public the following:
- Latest debt predictions
- Forward debt predictions over the next decade
- Any financial information that differed from the Annual Plan and Ten Year Plan which may affect future Council direction.
Mayor Laws pointed out that "Wanganui District Council debt is low in comparison with other territorial authorities of a similar size. This is despite a $118 million wastewater and stormwater project nearing completion".
Wanganui's peak projected debt is expected to be around $74 million in 2011/12 before trending downwards.
Presentation on Council debt